found only 81,713 with the Rothschilds in 

 London and 5,500 contos in the treasury. There 

 were, moreover, large deficits from previous years. 

 To cut down expenses and provide more money 

 was the only way to get the country out of its 

 difficulties, and that was the program adopted 

 l.y the Government at the risk of incurring un- 

 popularity. The paper money has since then 

 been reduced to 108,000 contos, the rate of ex- 

 change has risen to 12</., and Brazilian bonds 

 ha vi- risen 35 per cent. The rest of the loan of 

 1897 has been repaid, no treasury bills were out- 

 standing, and the Government had at the end 

 of the financial year 2,000,000 credit in Lon- 

 don and 12,000 contos and 300,000 sterling with 

 the Bank of the Republic. The era of deficits 

 has changed to one of substantial surpluses. 

 With the funding loan of 8,750,000 the nominal 

 amount of the debt was about 2,000,000 great- 

 er, but adding the amount of paper money re- 

 deemed to 4,500,000 of gold bonds and 0,200 

 contos of internal bonds, a considerable amount 

 of debt has been wiped out. The San Francisco 

 railroads were acquired by the Government by 

 bonds paying 5 per cent., instead of the 7 per 

 cent, stipulated, a saving of 136,000 per annum; 

 and for the purchase of the other guaranteed 

 railroads 9,900,000 of 4-per-cent. bonds were 

 issued, only 500,000 more than would have been 

 due on the guarantees if they had remained the 

 property of the companies. The Government has 

 leased some of the redeemed lines with advan- 

 tage, the deficits of some had been turned into 

 surpluses, and the surpluses of others increased. 



The commercial agreement with Italy was con- 

 tinued till Dec. 31, 1902, pending a new arrange- 

 ment. In return for concessions in favor of Ital- 

 ian products, for which on account of the large 

 Italian population there is a growing demand in 

 Brazil, the Brazilian Government asked for com- 

 plete exemption from duty on Brazilian coffee; 

 when this was refused, it offered to continue the 

 minimum tariff for three years only in return 

 for a large reduction in the Italian coffee duty. 

 Germans complain that German immigrants and 

 their descendants in Brazil encounter hosility 

 more than the Italian settlers and are subjected 

 to injustice; that in many cases the provincial 

 government of Rio Grande do Sul had declared 

 their land titles defective because the Brazilian 

 landowners who sold the farms to their ancestors 

 had failed to fulfil the terms on which the land 

 had been granted. The German owners had 

 therefore in some cases been ejected and in others 

 had been compelled to buy the land over again 

 without allowance being made for the improve- 

 ments they had made themselves. Nevertheless, 

 emigration to Brazil is encouraged by the colo- 

 nial party in Germany in the hope that the Ger- 

 man communities there will preserve a patriotic 

 attachment to the empire and extend its influ- 

 ence. 



Dr. Francisco Rodrigues Alves, who arranged 

 with the European companies for the transfer of 

 the guaranteed railroads to the Government, was 

 on March 1 elected President of the republic for 

 the term beginning Nov. 15, 1902, and Dr. Silvano 

 Brandao was elected Vice-President. On Sept. 2 

 Dr. Joaquin Murtinho, who carried out the re- 

 forms for the restoration of the country's 

 finances, desiring to enter the Senate, resigned 

 the Ministry of Finance, which was taken over 

 by Sabino Barroso, the Minister of the Interior, 

 for the remainder of the presidential term. 



BRITISH COLUMBIA, a province of the 

 Dominion of Canada. Area. 383,300 square 

 miles; population, about 177,000. 



Politics and Legislation. At the beginning 

 of 1902 the Government was composed of James 

 Dunsmuir, Premier and President of the Council; 

 D. M. Eberts, Attorney-General; J. D. Prentice, 

 Minister of Finance, Agriculture, and Education; 

 W. C. Wells, Chief Commissioner of Lands and 

 Works. The Department of Mines was vacant, 

 and remained so until Feb. 27, when E. G. Prior, 

 who had once been a member of the Conserva- 

 tive Government at Ottawa, was appointed min- 

 ister. In politics the Government was a coali- 

 tion, and the personal element remained during 

 this year an important feature in British Colum- 

 bia politics, although a feeling in favor of intro- 

 ducing direct party politics into the administra- 

 tion of provincial affairs grew steadily in force. 

 A stormy session of the Legislature followed, 

 with a fluctuating Government majority. Mr. 

 Dunsmuir went to England after its adjournment 

 to attend the coronation, and not long after his 

 return he resigned the premiership in favor of 

 Col. Prior, who on Nov. 26 announced the follow- 

 ing as his Cabinet: Premier and Minister of 

 Mines, E. G. Prior; Attorney-General, D. M. 

 Eberts; President of the Council, W. W. B, 

 Mclnnes; Minister of Finance, J. D. Prentice; 

 Provincial Secretary and Minister of Education, 

 Dennis Murphy; Commissioner of Lands and 

 Works, W. C. Wells. 



Meanwhile the Legislature had been opened on 

 Feb. 20 by Lieut.-Gov. Sir Henri Joly de Lot- 

 biniere, after C. E. Pooley had been elected Speak- 

 er and Richard McBride chosen leader of the 

 Opposition at a party caucus. The speech from 

 the throne contained these passages: 



" In view of the unfavorable conditions which 

 affected the mining industry during 1901, it is 

 especially gratifying to know that the output of 

 the mines considerably exceeded that of any pre- 

 vious twelve months, and that the year closed 

 with several detrimental causes removed, and 

 with prospects of greatly increased activity and 

 development. Negotiations with the authorities 

 at Ottawa, begun last year, have been continued 

 by my Government, and a conference has been 

 agreed to for the further discussion of matters 

 affecting the relations of the province of British 

 Columbia and the Dominion of Canada under the 

 terms of union. A report will be laid before you 

 concerning the results of the commission to in- 

 quire into and adjust, where possible, freight 

 rates on agricultural products. It is satisfactory 

 to state, as a consequence, that substantial reduc- 

 tions have been made, and shipping facilities have 

 been improved. It is also a matter of very great 

 satisfaction that the agricultural industry in 

 this province is so prosperous. To further the 

 interests of the stock-raisers of the interior a 

 measure will be submitted providing for the es- 

 tablishment of a system of cold storage in con- 

 nection with abattoirs. 



" The subject of fishery development is one 

 which has been receiving greatly increased atten- 

 tion, and the efforts of my Government are in the 

 direction of placing the industry on a more satis- 

 factory footing. Steps will be taken with a view 

 to the introduction of a fair measure of redistri- 

 bution. Measures will be submitted for your 

 consideration having for their object the encour- 

 agement of immigration and the settlement of 

 unoccupied lands. A measure will also be sub- 

 mitted for the purpose of consolidating existing 

 loan acts and obtaining authority thereunder for 

 the issuance of a new loan. 



" Under the authority of legislation of last 

 session, agreements have been entered into with 

 several companies for the manufacture of pulp 



